Thursday, 27 March 2014

What is Repo rate

The rate at which RBI lends money to commercial banks is known as Repo Rate.

Repo Rate at present: 7.75%

Reverse Repo rate: Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.

Reverse Repo rate: 6.75%

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